1869 - The Black Friday Panic of 1869. When plunging gold prices precipitated a U.S. stock-market panic, an attempt by Jay Gould and James Fisk to corner the market in gold and drive up its price depended on preventing the sale of government gold, an arrangement assured through the two men's political influence. When Pres. Ulysses S. Grant heard of the scheme, he ordered the government to sell $4 million in gold, which caused the price to drop and produced a panic selling of other stocks. [1]
Feb. 1870 - Cooke Bank provided fiancancing for the Northern Pacific Railway. On July 2, 1864, President Abraham Lincoln signed an Act of Congress creating the Northern Pacific Railroad Company. It would have its eastern terminus at Lake Superior and its western terminus at Puget Sound. Much of its route was to follow the route of the famed 1804-1806 Lewis and Clark expedition across the unchartered West. Financing for the new railroad did not come about for several years, and it was not until 1870 that groundbreaking took place near Duluth, Minnesota. First stirrings of activity on the west end of the projected transcontinental began at about the same time. By 1883, only 300 miles remained between the two railheads. [2]
1871 - The Chicago Fire of 1871. At least 300 people were dead, 100,000 people were homeless and $200 million worth of property was destroyed The entire centralbusiness district of Chicago was leveled. The fire was one of the most spectacular events of the nineteenth century, and it is recognized as a major milestone in the city's history. [3]
1872 - The outbreak of equine influenza. An epizootic outbreak of equine influenza during 1872 in North America became known as "The Great Epizootic of 1872". The outbreak is known as the "most destructive recorded episode of equine influenza in history". The impact of the outbreak is marked as one of the major contributors to the Panic of 1873 in the United States. [4]
1873 - The demonetization of silver in 1873. What is known in Populist rhetoric of the late XIX century as The Crime of 1873 was the demonetization of silver enacted by the Coinage Act of 1873. Alexander Hamilton had set the United States on a bimetallic standard in 1792 and, with the notable exception of the Civil War, the country had not moved from this system. In practice this was a continuous switching from a gold standard to a silver standard. When the legal price of gold in term of silver, that is, how many pounds of silver you get for one pound of gold, which was set by the Coinage Act at 15 for 1, was greater than the market price, then nobody would bring gold to the mint and the country would be on a de facto monometallic silver standard. Immediately after the United States went for a gold standard regime in 1873, the market price of gold in term of silver began to rise, starting from about 15 in 1870 to reach a maximum of about 40 in 1900. The demonetization of silver was accompanied by several circumstances which led to a strong secular deflationary trend of about 1.7 % a year in the general CPI from 1875 to 1896. [5] 1873 – The Gold Resumption Act.Passed by Congress in 1873, the Gold Resumption Act officially revoked the bimetallic standard that was adopted by the U.S. government in 1792. The legislation was passed in recognition of the fact that by 1873 there were few silver coins in circulation. [6]
1873 - The Coinage Act. The Fourth Coinage Act was enacted by the United States Congress in 1873 and embraced the gold standard and demonetized silver. Western mining interests and others who wanted silver in circulation years later labeled this measure the "Crime of '73". Gold became the only metallic standard in the United States, hence putting the United States 'de facto’ onto the gold standard. The USA did not actually adopt the gold standard 'de jure' until the year 1900, following a lengthy period of debate that was made famous by William Jennings Bryan's cross of gold speech at the 1896 Democratic convention. By this time, most major nations had moved to a gold standard. The only major nation that continued on the silver standard into the twentieth century was China. China and Hong Kong abandoned the silver standard in 1935. [7] Sept. 1873 - The American economy entered the crisis. The basic economic problems are overproduction, a declining market and deflation. Investors in Europe, where a depression is already underway, begin to call in American loans. The New York Stock Exchange closes its doors for 10 days; other businesses fail; and railroad construction is curtailed, with some railroads defaulting on their bonds. The unemployed begin to move about the country seeking jobs, and bread lines appear in the cities. The hard times drove numbers of laboring people and those in humble circumstances to the West and other portions of the country, to seek the rewards which the stagnation of business in the great commercial centre denied them. [8]
Sept. 18, 1873 - Cooke's bank declares bankruptcy (starts the three year depression. More than 10,0000 businesses fail).
Sept. 20, 1873 - U.S. stock market closes for 10 days. Speculation in railroad stocks causes the failure of Jay Cook and Company, a Philadelphia bank. The NYSE closes for 10 days to halt a financial panic. [9]
Dec.1873 - The march of 5,000 unemployed on City Hall in Chicago.
1877 - American railroad unions commence the Great Railroad Strike of 1877. Demonstrations, general strikes and violence occurred in cities across the nation. Pittsburgh was the scene of the greatest loss of life and property damage. Massive intervention by the federal government sank the strikers' spirits and buoyed those of management. The workers eventually capitulated, but harbored ill feeling against Hayes for his action. The strike of 1877 was most violent labor-management confrontation to that point in American history. It was the starting signal for an era of strife between workers and owners. [10]
1879 - The depression lifted in the spring of 1879. July 1890 - The Sherman Silver Purchase Act - Enacted as a United States federal law. While not authorizing the free and unlimited coinage of silver that the Free Silver supporters wanted, it increased the amount of silver the government was required to purchase every month. The Sherman Silver Purchase Act had been passed in response to the growing complaints of farmers and mining interests. Farmers had immense debts that could not be paid off due to deflation caused by overproduction, and they urged the government to pass the Sherman Silver Purchase Act in order to boost the economy and cause inflation, allowing them to pay their debts with cheaper dollars. [11]
1893 - The Panic of 1893 in the Financial World. The economic collapse of the Philadelphia and Reading Railroads was the first step toward the Panic of 1893. A growing depression in Europe resulted in British investors selling their American investments and redeeming them for gold. This fostered a growing American gold loss, creating a panic. By May 15, stock prices reached an all-time low. Many major firms; such as the Union-Pacific, Northern-Pacific and Santa Fe railroads; were forced to declare bankruptcy Unemployment steadily grew, rising from 1 million in August 1893 to 2 million by January 1894 By the middle of the year, the figure had reached 3 million. The government had no plan to end the economic panic. Most relief for those without jobs was provided by local voluntary organizations, who were quite overwhelmed by the need. [12]
1893 - The Panic of 1893 with the presidential papers. At this stage gold and silver must part company and the Government must fail in its established policy to maintain the two metals on a parity with each other. Given over to the exclusive use of a currency greatly depreciated according to the standard of the commercial world, they could no longer claim a place among nations of the first class, nor could the Government claim a performance of its obligation, so far as such an obligation has been imposed upon it, to provide for the use of the people the best and safest money. [13] Feb. 23, 1893 – The bankruptcy of the Philadelphia and Reading Railroad.The fall of the Philadelphia & Reading began with Archibald McLeod, which began president of the railroad in 1890. Despite controlling nearly three-quarters of the anthracite market by the end of the century McLeod’s dreams fell apart when he pushed the railroad too far and it collapsed into bankruptcy. Shortly thereafter the Reading Company was established to take over the P&R and its affiliates. [14]
Spring 1893 – President Grover Cleveland summoned a special session of Congress. Republicans joined a segment of the Democratic Party to repeal the measure, but Cleveland was disappointed to conclude that the economic distress was not relieved. Western and Southern members of the president’s party were upset by his cooperation with their political opponents on an issue of vital importance in their districts. [15]
1893 – World’s Fair in Chicago. The great World's Fair was held at Chicago in 1893, celebrating the four hundredth anniversary of the landing of Columbus. It was a magnificent advance on the famous Centennial of 1876. Costing over $20,000,000, its ideal edifices satisfied all standards of taste and beauty. [16]
Elections of 1896 and 1900 The results of the elections of 1896 and 1900 indicated a virtual acceptance, at least for the time, of the universal adhesion to a gold standard. From 1862 until the resumption of 1897 gold had been above par, reaching the high premium of 285 in 1864. It first touched par a few days before January 1, when the Resumption Act came into force. [17] United States – The 20th and 21st CenturiesThe 1980s - The Savings and Loan Crisis of the 1980s. The Savings and Loans Crisis created the greatest banking collapse since the Great Depression of 1929. By 1989, over half the Savings and Loans had failed, along with the FSLIC fund that was created to insure their deposits. Savings and Loans were specialized banks that used low-interest, but Federally-insured, deposits in savings accounts to fund mortgages. In the 1980's, the popularity of money market accounts reduced the attractiveness of savings accounts, so the banks asked Congress to remove restrictions. In 1982, the Garn-St. Germain Depository Institutions Act was passed, which allowed S&L's to raise interest rates on deposits, make commercial and consumer loans, and removed restrictions on loan-to-value ratios. At the same time, the Federal Home Loan Bank Board regulatory staff was reduced thanks to budget cuts. [18.01]
Oct. 19, 1987 - Another "Black Monday' causing a crash in the U.S. Stock Market.In the days between October 14 and October 19, 1987, major indexes of market valuation in the United States dropped 30 percent or more. On October 19, 1987, a date that subsequently became known as "Black Monday," the Dow Jones Industrial Average plummeted 508 points, losing 22.6% of its total value. The S&P 500 dropped 20.4%, falling from 282.7 to 225.06. This was the greatest loss Wall Street had ever suffered on a single day. [18.02]July 27, 1997 - Trading interruption of the New York Stock Exchange as the Dow Jones fell 7 percent, enough to trigger a 'circuit breaker'. 2007 to 2008 - The Sub-Prime Mortgage Crisis. Approximately 80% of U.S. mortgages issued to subprime borrowers were adjustable-rate mortgages After U.S. house prices peaked in mid-2006 and began their steep decline thereafter, refinancing became more difficult. As adjustable-rate mortgages began to reset at higher rates, mortgage delinquencies soared. Securities backed with mortgages, including subprime mortgages, widely held by financial firms, lost most of their value. Global investors also drastically reduced purchases of mortgage-backed debt and other securities. In addition to causing increased delinquencies and foreclosures in subprime mortgages (along with all other types of mortgages including Alt-A and conforming), the 2007–2010 financial crisis caused a decline in the capacity and willingness of the private financial system to support lending, tightening credit around the world and slowing economic growth in the U.S. and Europe. [18.03]
Sept. 11, 2001 – The terrorist attacks in the United States. 9/11 was one of the most pivotal events in world history. Its impact will be felt for years to come. The attacks had a significant economic impact on the United States and world markets. The New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), and NASDAQ did not open on September 11 and remained closed until September 17. When the stock markets reopened, the Dow Jones Industrial Average (DJIA) stock market index fell 684 points, or 7.1%, to 8921, a record-setting one-day point decline. [18.1]
March 2003 – The Invasion of Iraq. The reasons for the invasion were "to disarm Iraq of weapons of mass destruction, to end Saddam Hussein's alleged support for terrorism, and to free the Iraqi people.
Sept. 2008 - Oct. 2008 - Summary of events in the stock market. The Dow would plummet 3,600 points from the September 19, 2008, intraday high of 11,483 to the October 10, 2008, intraday low of 7,882. The following is a recap of the major U.S. events that unfolded during this historic three-week period. [18.2]
September 21, 2008:Goldman Sachs and Morgan Stanley, the last two of the major investment banks still standing, convert from investment banks to bank holding companies in order to gain more flexibility for obtaining bailout funding.
September 25, 2008:After a 10-day bank run, the Federal Deposit Insurance Corporation (FDIC) seizes Washington Mutual, then the nation's largest savings and loan, which had been heavily exposed to subprime mortgage debt. Its assets are transferred to JPMorgan Chase.
September 28, 2008:The TARP bailout plan stalls in Congress.
September 29, 2008:The Dow declines 774 points (6.98%), the largest point drop in history. Also, Citigroup (NYSE:C) acquires Wachovia, then the fourth-largest U.S. bank.
October 3, 2008: A reworked $700 billion TARP plan, renamed the Emergency Economic Stabilization Act of 2008, passes a bipartisan vote in Congress.
October 6, 2008:The Dow closes below 10,000 for the first time since 2004.
October 22, 2008:President Bush announces that he will host an international conference of financial leaders on November 15, 2008.
Oct. 2008 - the Emergency Economic Stabilization Act of 2008. Global credit markets came to a near stand still in September 2008, as several major financial institutions, such as Lehman Brothers, Fannie Mae, Freddie Mac and American International Group, went under. Revisions to the program were announced by Treasury Secretary Paulson and President Bush; allowing for the first $250 billion to be used to buy equity stakes in nine major U.S. banks, and many smaller banks. This program demands that companies involved lose some tax benefits, and in many cases incur limits on executive compensation. [18.3]
Nov. 4, 2008 – Presidential election in the United States. There were several unique aspects of the 2008 election. The election was the first in which an African American was elected President. It was also the first time two sitting senators ran against each other. The 2008 election was the first in 56 years in which neither an incumbent president nor a vice president ran. July 30, 2009 – Cashes for Clunkers Program The federal government's new Cash for Clunkers program has caused a lot of excitement for consumers. It's also caused plenty of confusion. [18.35] March 23, 2010 – The Obama Healthcare Act becomes law. Recent Health care reform in the United States has been enacted via two bills: the Patient Protection and Affordable Care Act (known as the "Senate bill"), which became law on March 23, 2010 and was shortly thereafter amended by the Health Care and Education Reconciliation Act of 2010 (H.R. 4872) (which became law on March 30). No Republicans voted in favor of either bill. [18.4]
Nov. 2, 2010 – Mid-election results returns the House back to the Republicans. The Republicans overwhelmingly won back the majority in the House of Representatives as well as gaining several seats in the Senate resulting in a strong influence in the Senate as well. The Republicans have stated that one of their top goals is to focus on the economy and reduce unemployment as well as repeal the Obama Healthcare Act passed in March of this year.
Europe in the 19th Century
1870 - War breaks out between Prussia and France. The Franco-German War, also called Franco-Prussian war in which a coalition of German states led by Prussia defeated France. The war marked the end of French hegemony in continental Europe and resulted in the creation of a unified Germany. [19]
1870 - Italian unification is achieved. Italian unification, or "The Resurgence", was the political and social movement that agglomerated different states of the Italian peninsula into the single state of Italy in the 19th century.
1870 - 1871 - German unification. German Unification was the merging of the states in the North German Confederation and other German states to form the German Empire.
Nov. 1871 - The demonetization of silver in Germany.
1873 - Crash in Germany called the "Grunderjahre".
The huge stock market crash of 1873, combined with economic overheating due to massive French reparations from the war, put an abrupt end to this upswing, referred to in German as the Founding Epoch Crisis (Gründerkrise), resulting in a twenty-year phase of economic stagnation. This crisis caused the theory of economic liberalism to lose ground, and it was also this time which saw the introduction of business control mechanisms, as well as protective customs tariffs. [20]
May 1873 - The Vienna "Ringstrasse" Stock Exchange crashes.
On May 9, 1873, the Vienna Stock Exchange crashed, no longer able to sustain false expansion, insolvency, and dishonest manipulations. A series of Viennese bank failures resulted, causing a contraction of the money available for business lending. In Berlin, the railway empire of Bethel Henry Strousberg crashed, bursting the speculation bubble there. [21]
1874 - Disraeli becomes Prime Minister of Britain (resigns 1880)
1879 - Protective tariffs were established. After the 1873 depression, agricultural and industrial groups lobbied for protective tariffs. The 1879 tariffs protected these interests, stimulated economic revival through state intervention, and refurbished political support for the conservative politicians Bismarck and John A. Macdonald (the Canadian prime minister). [22]
1880 - New French laws imposing stiff tariffs. Peasants in France and Prussia lost their comparative advantage when machines, fertilizers and new varieties of wheat meant grain could be produced at a better price on the great plains of North America, in Argentina or Ukraine and be transported cheaply by sea and rail. Centre-right deputy had devised the Méline tariffs which in 1892 protected French agriculture from international competition. [23]
1881 - Assasination of Czar Alexander II known as a 'reformer'.
1869 - The Black Friday Panic of 1869.
When plunging gold prices precipitated a U.S. stock-market panic, an attempt by Jay Gould and James Fisk to corner the market in gold and drive up its price depended on preventing the sale of government gold, an arrangement assured through the two men's political influence. When Pres. Ulysses S. Grant heard of the scheme, he ordered the government to sell $4 million in gold, which caused the price to drop and produced a panic selling of other stocks. [1]
Feb. 1870 - Cooke Bank provided fiancancing for the Northern Pacific Railway.
On July 2, 1864, President Abraham Lincoln signed an Act of Congress creating the Northern Pacific Railroad Company. It would have its eastern terminus at Lake Superior and its western terminus at Puget Sound. Much of its route was to follow the route of the famed 1804-1806 Lewis and Clark expedition across the unchartered West. Financing for the new railroad did not come about for several years, and it was not until 1870 that groundbreaking took place near Duluth, Minnesota. First stirrings of activity on the west end of the projected transcontinental began at about the same time. By 1883, only 300 miles remained between the two railheads. [2]
1871 - The Chicago Fire of 1871.
At least 300 people were dead,
1872 - The outbreak of equine influenza.
An epizootic outbreak of equine influenza during 1872 in North America became known as "The Great Epizootic of 1872". The outbreak is known as the "most destructive recorded episode of equine influenza in history". The impact of the outbreak is marked as one of the major contributors to the Panic of 1873 in the United States. [4]
1873 - The demonetization of silver in 1873.
What is known in Populist rhetoric of the late XIX century as The Crime of 1873 was the demonetization of silver enacted by the Coinage Act of 1873. Alexander Hamilton had set the United States on a bimetallic standard in 1792 and, with the notable exception of the Civil War, the country had not moved from this system. In practice this was a continuous switching from a gold standard to a silver standard. When the legal price of gold in term of silver, that is, how many pounds of silver you get for one pound of gold, which was set by the Coinage Act at 15 for 1, was greater than the market price, then nobody would bring gold to the mint and the country would be on a de facto monometallic silver standard. Immediately after the United States went for a gold standard regime in 1873, the market price of gold in term of silver began to rise, starting from about 15 in 1870 to reach a maximum of about 40 in 1900. The demonetization of silver was accompanied by several circumstances which led to a strong secular deflationary trend of about 1.7 % a year in the general CPI from 1875 to 1896. [5]
1873 – The Gold Resumption Act. Passed by Congress in 1873, the Gold Resumption Act officially revoked the bimetallic standard that was adopted by the U.S. government in 1792. The legislation was passed in recognition of the fact that by 1873 there were few silver coins in circulation. [6]
1873 - The Coinage Act.
The Fourth Coinage Act was enacted by the United States Congress in 1873 and embraced the gold standard and demonetized silver. Western mining interests and others who wanted silver in circulation years later labeled this measure the "Crime of '73". Gold became the only metallic standard in the United States, hence putting the United States 'de facto’ onto the gold standard. The USA did not actually adopt the gold standard 'de jure' until the year 1900, following a lengthy period of debate that was made famous by William Jennings Bryan's cross of gold speech at the 1896 Democratic convention. By this time, most major nations had moved to a gold standard. The only major nation that continued on the silver standard into the twentieth century was China. China and Hong Kong abandoned the silver standard in 1935. [7]
Sept. 1873 - The American economy entered the crisis.
The basic economic problems are overproduction, a declining market and deflation. Investors in Europe, where a depression is already underway, begin to call in American loans. The New York Stock Exchange closes its doors for 10 days; other businesses fail; and railroad construction is curtailed, with some railroads defaulting on their bonds. The unemployed begin to move about the country seeking jobs, and bread lines appear in the cities. The hard times drove numbers of laboring people and those in humble circumstances to the West and other portions of the country, to seek the rewards which the stagnation of business in the great commercial centre denied them. [8]
Sept. 18, 1873 - Cooke's bank declares bankruptcy
(starts the three year depression. More than 10,0000 businesses fail).
Sept. 20, 1873 - U.S. stock market closes for 10 days.
Speculation in railroad stocks causes the failure of Jay Cook and Company, a Philadelphia bank. The NYSE closes for 10 days to halt a financial panic. [9]
Dec.1873 - The march of 5,000 unemployed on City Hall in Chicago.
1877 - American railroad unions commence the Great Railroad Strike of 1877.
Demonstrations, general strikes and violence occurred in cities across the nation. Pittsburgh was the scene of the greatest loss of life and property damage. Massive intervention by the federal government sank the strikers' spirits and buoyed those of management. The workers eventually capitulated, but harbored ill feeling against Hayes for his action. The strike of 1877 was most violent labor-management confrontation to that point in American history. It was the starting signal for an era of strife between workers and owners. [10]
1879 - The depression lifted in the spring of 1879.
July 1890 - The Sherman Silver Purchase Act - Enacted as a United States federal law. While not authorizing the free and unlimited coinage of silver that the Free Silver supporters wanted, it increased the amount of silver the government was required to purchase every month. The Sherman Silver Purchase Act had been passed in response to the growing complaints of farmers and mining interests. Farmers had immense debts that could not be paid off due to deflation caused by overproduction, and they urged the government to pass the Sherman Silver Purchase Act in order to boost the economy and cause inflation, allowing them to pay their debts with cheaper dollars. [11]
1893 - The Panic of 1893 in the Financial World.
The economic collapse of the Philadelphia and Reading Railroads was the first step toward the Panic of 1893. A growing depression in Europe resulted in British investors selling their American investments and redeeming them for gold. This fostered a growing American gold loss, creating a panic. By May 15, stock prices reached an all-time low. Many major firms; such as the Union-Pacific, Northern-Pacific and Santa Fe railroads; were forced to declare bankruptcy Unemployment steadily grew, rising from 1 million in August 1893 to 2 million by January 1894 By the middle of the year, the figure had reached 3 million. The government had no plan to end the economic panic. Most relief for those without jobs was provided by local voluntary organizations, who were quite overwhelmed by the need. [12]
1893 - The Panic of 1893 with the presidential papers.
At this stage gold and silver must part company and the Government must fail in its established policy to maintain the two metals on a parity with each other. Given over to the exclusive use of a currency greatly depreciated according to the standard of the commercial world, they could no longer claim a place among nations of the first class, nor could the Government claim a performance of its obligation, so far as such an obligation has been imposed upon it, to provide for the use of the people the best and safest money. [13]
Feb. 23, 1893 – The bankruptcy of the Philadelphia and Reading Railroad. The fall of the Philadelphia & Reading began with Archibald McLeod, which began president of the railroad in 1890. Despite controlling nearly three-quarters of the anthracite market by the end of the century McLeod’s dreams fell apart when he pushed the railroad too far and it collapsed into bankruptcy. Shortly thereafter the Reading Company was established to take over the P&R and its affiliates. [14]
Spring 1893 – President Grover Cleveland summoned a special session of Congress.
Republicans joined a segment of the Democratic Party to repeal the measure, but Cleveland was disappointed to conclude that the economic distress was not relieved. Western and Southern members of the president’s party were upset by his cooperation with their political opponents on an issue of vital importance in their districts. [15]
1893 – World’s Fair in Chicago. The great World's Fair was held at Chicago in 1893, celebrating the four hundredth anniversary of the landing of Columbus. It was a magnificent advance on the famous Centennial of 1876. Costing over $20,000,000, its ideal edifices satisfied all standards of taste and beauty. [16]
Elections of 1896 and 1900 The results of the elections of 1896 and 1900 indicated a virtual acceptance, at least for the time, of the universal adhesion to a gold standard. From 1862 until the resumption of 1897 gold had been above par, reaching the high premium of 285 in 1864. It first touched par a few days before January 1, when the Resumption Act came into force. [17]
United States – The 20th and 21st CenturiesThe 1980s - The Savings and Loan Crisis of the 1980s.
The Savings and Loans Crisis created the greatest banking collapse since the Great Depression of 1929. By 1989, over half the Savings and Loans had failed, along with the FSLIC fund that was created to insure their deposits. Savings and Loans were specialized banks that used low-interest, but Federally-insured, deposits in savings accounts to fund mortgages. In the 1980's, the popularity of money market accounts reduced the attractiveness of savings accounts, so the banks asked Congress to remove restrictions. In 1982, the Garn-St. Germain Depository Institutions Act was passed, which allowed S&L's to raise interest rates on deposits, make commercial and consumer loans, and removed restrictions on loan-to-value ratios. At the same time, the Federal Home Loan Bank Board regulatory staff was reduced thanks to budget cuts. [18.01]
Oct. 19, 1987 - Another "Black Monday' causing a crash in the U.S. Stock Market.In the days between October 14 and October 19, 1987, major indexes of market valuation in the United States dropped 30 percent or more. On October 19, 1987, a date that subsequently became known as "Black Monday," the Dow Jones Industrial Average plummeted 508 points, losing 22.6% of its total value. The S&P 500 dropped 20.4%, falling from 282.7 to 225.06. This was the greatest loss Wall Street had ever suffered on a single day. [18.02]July 27, 1997 - Trading interruption of the New York Stock Exchange as the Dow Jones fell 7 percent, enough to trigger a 'circuit breaker'.
2007 to 2008 - The Sub-Prime Mortgage Crisis.
Approximately 80% of U.S. mortgages issued to subprime borrowers were adjustable-rate mortgages After U.S. house prices peaked in mid-2006 and began their steep decline thereafter, refinancing became more difficult. As adjustable-rate mortgages began to reset at higher rates, mortgage delinquencies soared. Securities backed with mortgages, including subprime mortgages, widely held by financial firms, lost most of their value. Global investors also drastically reduced purchases of mortgage-backed debt and other securities. In addition to causing increased delinquencies and foreclosures in subprime mortgages (along with all other types of mortgages including Alt-A and conforming), the 2007–2010 financial crisis caused a decline in the capacity and willingness of the private financial system to support lending, tightening credit around the world and slowing economic growth in the U.S. and Europe. [18.03]
Sept. 11, 2001 – The terrorist attacks in the United States.
9/11 was one of the most pivotal events in world history. Its impact will be felt for years to come. The attacks had a significant economic impact on the United States and world markets. The New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), and NASDAQ did not open on September 11 and remained closed until September 17. When the stock markets reopened, the Dow Jones Industrial Average (DJIA) stock market index fell 684 points, or 7.1%, to 8921, a record-setting one-day point decline. [18.1]
March 2003 – The Invasion of Iraq.
The reasons for the invasion were "to disarm Iraq of weapons of mass destruction, to end Saddam Hussein's alleged support for terrorism, and to free the Iraqi people.
Sept. 2008 - Oct. 2008 - Summary of events in the stock market.
The Dow would plummet 3,600 points from the September 19, 2008, intraday high of 11,483 to the October 10, 2008, intraday low of 7,882. The following is a recap of the major U.S. events that unfolded during this historic three-week period. [18.2]
Oct. 2008 - the Emergency Economic Stabilization Act of 2008.
Global credit markets came to a near stand still in September 2008, as several major financial institutions, such as Lehman Brothers, Fannie Mae, Freddie Mac and American International Group, went under. Revisions to the program were announced by Treasury Secretary Paulson and President Bush; allowing for the first $250 billion to be used to buy equity stakes in nine major U.S. banks, and many smaller banks. This program demands that companies involved lose some tax benefits, and in many cases incur limits on executive compensation. [18.3]
Nov. 4, 2008 – Presidential election in the United States.
There were several unique aspects of the 2008 election. The election was the first in which an African American was elected President. It was also the first time two sitting senators ran against each other. The 2008 election was the first in 56 years in which neither an incumbent president nor a vice president ran.
July 30, 2009 – Cashes for Clunkers Program
The federal government's new Cash for Clunkers program has caused a lot of excitement for consumers. It's also caused plenty of confusion. [18.35]
March 23, 2010 – The Obama Healthcare Act becomes law.
Recent Health care reform in the United States has been enacted via two bills: the Patient Protection and Affordable Care Act (known as the "Senate bill"), which became law on March 23, 2010 and was shortly thereafter amended by the Health Care and Education Reconciliation Act of 2010 (H.R. 4872) (which became law on March 30). No Republicans voted in favor of either bill. [18.4]
Nov. 2, 2010 – Mid-election results returns the House back to the Republicans.
The Republicans overwhelmingly won back the majority in the House of Representatives as well as gaining several seats in the Senate resulting in a strong influence in the Senate as well. The Republicans have stated that one of their top goals is to focus on the economy and reduce unemployment as well as repeal the Obama Healthcare Act passed in March of this year.
Europe in the 19th Century
1870 - War breaks out between Prussia and France.
The Franco-German War, also called Franco-Prussian war in which a coalition of German states led by Prussia defeated France. The war marked the end of French hegemony in continental Europe and resulted in the creation of a unified Germany. [19]
1870 - Italian unification is achieved.
Italian unification, or "The Resurgence", was the political and social movement that agglomerated different states of the Italian peninsula into the single state of Italy in the 19th century.
1870 - 1871 - German unification.
German Unification was the merging of the states in the North German Confederation and other German states to form the German Empire.
Nov. 1871 - The demonetization of silver in Germany.
1873 - Crash in Germany called the "Grunderjahre".
The huge stock market crash of 1873, combined with economic overheating due to massive French reparations from the war, put an abrupt end to this upswing, referred to in German as the Founding Epoch Crisis (Gründerkrise), resulting in a twenty-year phase of economic stagnation. This crisis caused the theory of economic liberalism to lose ground, and it was also this time which saw the introduction of business control mechanisms, as well as protective customs tariffs. [20]
May 1873 - The Vienna "Ringstrasse" Stock Exchange crashes.
On May 9, 1873, the Vienna Stock Exchange crashed, no longer able to sustain false expansion, insolvency,
1874 - Disraeli becomes Prime Minister of Britain (resigns 1880)
1879 - Protective tariffs were established.
After the 1873 depression, agricultural and industrial groups lobbied for protective tariffs. The 1879 tariffs protected these interests, stimulated economic revival through state intervention, and refurbished political support for the conservative politicians Bismarck and John A. Macdonald (the Canadian prime minister). [22]
1880 - New French laws imposing stiff tariffs.
Peasants in France and Prussia lost their comparative advantage when machines, fertilizers and new varieties of wheat meant grain could be produced at a better price on the great plains of North America, in Argentina or Ukraine and be transported cheaply by sea and rail. Centre-right deputy had devised the Méline tariffs which in 1892 protected French agriculture from international competition. [23]
1881 - Assasination of Czar Alexander II known as a 'reformer'.
1891 - Stock market collapses in Great Britian.
Citations
[1] America's Gilded Age; Judith /Freeman Clark
[2] America's Gilded Age; Judith Freeman Clark
[3] The Annals of America; Vol. 10, Encyclopedia Britannica, Inc.
[4] http://veterinaryrecord.bmj.com/content/133/21/515.abstract
[5] The Annals of America; Vol. 11, Encyclopedia Britannica, Inc. and Ameica's Gilded Age
[6] http://www.u-s-history.com
[7] History of the United States 1850 - 1877 Vol. VII, James Ford Rhodes
[8] Milestone Documents in American History, Vol. 2 1824 - 1887, Schlager Group
[9] http://www.ehow.com/facts_5011600_history-stock-market-plunges.html
[10] http://www.american-rails.com/reading-railroad.html
[11] America's Gilded Age, Judith Freeman Clark
[12] http://www.thehistorybox.com/ny_city/panics/panics_article9a.htm
[13] http://www.thehistorybox.com/ny_city/panics/panics_article9a.htm
[14] http://www.american-rails.com/reading-railroad.html
[15] America's Gilded Age, Judith Freeman Clark
[16] http://www.progressiveliving.org/history/timeline/gilded_age_reconstruction/gilded_age_reconstruction_timeline.html
[17] History of the United States, James Ford Rhodes
[18.01] http://www.econlib.org/library/Enc/SavingsandLoanCrisis.html
[18.02] http://www.marketvolume.com/info/stock_market_crashes.asp
[18.03] http://www.homebuyinginstitute.com/homebuyingtips/2007/12/subprime-mortgage-crisis-explained.html
[18.1] http://www.cdi.org/terrorism/chronology.html
[18.2] http://www.pbs.org/fmc/interact.htm
[18.3] http://www.opencongress.org/bill/110-h1424/show
[18.35] http://www.cashforclunkersfacts.com/20090620-cash-for-clunkers-rules/
[18.4] http://www.healthcare.gov/
[19] http://www.britannica.com/EBchecked/topic/216971/Franco-German-War
[20] http://www.britannica.com/EBchecked/topic/247375/Grunderjahre
[21] http://www.exchange-handbook.co.uk/index.cfm?section=sample&action=detail&mode=show_all&id=3328&item_id=
[22] http://www.chacha.com/question/what-part-did-tariffs-play-in-european-expansion-in-the-late-1800s
[23] http://www.dartmouth.edu/~dirwin/docs/FTBF.pdf